Primarolo not revisiting IR35

The Treasury has dismissed reports that it is looking again at IR35 and has said that the Professional Contractors Group (PCG) has recognised that it is here to stay and is working with them on its implementation.

Rumours have been circulating on other news sites that the Treasury was prepared to review IR35 and that the political game was back on following the personal intervention of the Paymaster General, Dawn Primarolo.

Other sites have reported that 'the Paymaster General had offered to look at IR35 again' and that the PCG lobbying team at a 'famous' breakfast got her to promise that she would get her people to look at IR35 afresh.

Dawn Primarolo's spokesman said that these reports were 'over-played' and 'not the case' and that, while civil servants were always willing to meet interest groups, there was no specific new IR35 initiative.

The Paymaster General's spokesman continued: "It isn't the case that the Paymaster General has ordered any sort of review of IR35. IR35 is here to stay.

"The Inland Revenue officials are always meeting interest groups, to keep them in the loop and see how the legislation is working. We can discuss how the details are working, but the principles on which IR35 is based are here to stay.

"The Inland Revenue was happy to meet representatives of the Professional Contractors Group in November last year and had constructive talks. We are pleased that the PCG has recognised that IR35 is here to stay and wants to work with us on its implementation."

Ms Primarolo's spokesman had no record of any breakfast meetings between the Minister and the PCG. However, the PCG had previously claimed they had had a breakfast meeting with Ms Primarolo, which led to the reports that she was looking again at IR35.

It is believed that coincidentally the PCG lobbying team was booked into the same hotel as Ms Primarolo at the Labour Party Conference. Casual or private meetings at Party Conferences without officials or agendas are usually treated by politicians and lobbyists as 'background' discussions.

A former Government adviser and political lobbyist explained: "The 'door-stepping' of Government Ministers at Party Conference is a 'political sport' for lobbyists. Politicians literally have dozens of casual 'meetings' when they are at their Party's conference without officials and their Civil Service team. These would not necessarily be treated with the same weight as the formal Departmental meetings.

"Trying to turn remarks from such 'meetings' over tea and toast or a pint in the bar, into a statement of a shift in Government policy means that Ministers are less willing to stop and chat next time you bump into them."

The PCG was unavailable for comment.